Oil rises on OPEC+ output cuts, U.S. inventory draw
Oil rose on Thursday on strong U.S. economic data, falling inventories and the OPEC+ decision to stick to its output cuts, but a stronger U.S. dollar limited prices.
Brent crude gained 41 cents, or 0.7%, to $58.87 a barrel, having earlier hit its highest level since Feb. 21 at $59.04.
U.S. West Texas Intermediate (WTI) crude settled 0.6% higher at $56.02 a barrel.
U.S. Labor Department data, which showed a drop in Americans filing new applications for unemployment benefits last week, helped boost prices, while investors were also expecting positive data from the government’s comprehensive monthly employment report due on Friday.
The market was further bolstered by news that Democrats in the U.S. Congress took the first steps toward advancing President Joe Biden’s proposed $1.9 trillion coronavirus aid plan.
But a strong U.S. dollar, which typically moves inversely with oil prices, took some of the steam out of oil’s momentum. The dollar hit a more than two-month high against a basket of other currencies.
Reference: CNBC
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